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| Gold Prices |
The price of gold is set to surge to nearly $5,000 per ounce over the next 12 months, according to predictions made at the London Bullion Market Association’s (LBMA) annual gathering in Kyoto. Gold's impressive 52% growth in 2023 has already pushed it past key psychological thresholds, and experts expect this upward momentum to continue in the coming year.
Strong Growth and Market Drivers
Gold has seen one of its biggest annual increases since 1979. After breaking the $3,000-per-ounce mark in March and surpassing $4,000 in October, the precious metal is expected to continue climbing. The latest LBMA forecast predicts a 27% rise from its current levels, bringing the price to $4,980 by this time next year. This increase comes amid heightened geopolitical tensions, U.S. tariff uncertainties, and a wave of investment driven by a fear of missing out on gold's ongoing rally. As of October 20, gold reached an all-time high of $4,381 per ounce.
The LBMA’s outlook aligns closely with the latest Reuters poll, which also predicts a strong gold price, forecasting an average price of $4,275 per ounce by 2026. Both forecasts highlight gold’s persistent allure as a safe-haven asset in times of economic instability and geopolitical turmoil.
Silver and Other Precious Metals Also Set for Gains
In addition to gold, other precious metals are also expected to see significant price increases. Silver, which has already gained 62% this year, is predicted to rise to $59 per ounce, up from approximately $46. Silver's surge is attributed to strong investment demand, tight supply in the London spot market, and increased purchases in India.
Platinum and palladium are also on an upward trajectory. Platinum prices are expected to reach $1,816 per ounce from the current $1,544, while palladium is forecasted to increase to $1,709 from around $1,364. Both metals have seen substantial growth this year—platinum up 76% and palladium up 54%. The price increases for these metals are largely driven by supply constraints in the mining sector, coupled with concerns about U.S. tariffs and increasing investments in U.S. stocks.
ScrapInsight Commentary
Gold's sharp rise is a direct reflection of the growing demand for safe-haven assets amid geopolitical tensions and economic instability. If the LBMA forecast proves correct, gold could further solidify its role as a key store of value. Precious metals like silver, platinum, and palladium also stand to benefit from similar market conditions, creating opportunities for strategic investment.
